REPUBLIKA.CO.ID, JAKARTA - Chairman of National Banks Association (Perbanas), Sigit Pramono expected that banks had to rely on fee based income for next year as it would be more stable for industry. After that, banks may rely on credit. Bank with high credit growth also needs a high of capital adequacy ratio (CAR), so the bank must raise its capital quickly.

"In the end, state banks and private banks have to raise its capital, so we are going to focus on fee based income," Pramono said recently. 

In the first nine months of 2013, growth of fee based income boosted up to 20 percent. Service based revenue was derived from transaction banking, such as cash management, trade and exchange.

Revenue of Bank Permata that grew 14 percent to five trillion IR was supported by growth of interest income. The increase in interest income in the first nine months reached 13 percent, while loan increased 30 percent year on year. The revenue can be balanced by third party funds of 34 percent. Non performing loan (NPL) gross can also be decreased, from 1.5 percent to 1.1 percent.

Bank Indonesia (BI) will encourage banks to increase its fee based income. More than 80 percent of sources of operating income in Indonesia are dominated by interest income or from credit. Bank revenue can be higher with a stable fee based income. 

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